On the monthly chart XAU/USD is about to break throuh the trendline which is more than 1 year old. It has bounced off the 50% retracement mark. For very long term purposes the trend is still up.
Although, before taking any long postions on Gold. I would wait for a potential whipsaw/manipulation of the price once again to take the gold bugs out of the game. A high probability exists of a whipsaw back to the 61.8 retracement level is there. At that level manipulation of price is not possible as it gets below the extraction cost price of gold today.
For long term buyers of gold. I suggest you wait for a full confirmation of the break of trendline and wait for atleast one period (on monthly) before entering into long postions.
If whipsaw occurs I would enter short positions upto 61.8 retracement levels which is the next major support for gold. At that level its a very very lucrative buy for long term purposes.
Although, before taking any long postions on Gold. I would wait for a potential whipsaw/manipulation of the price once again to take the gold bugs out of the game. A high probability exists of a whipsaw back to the 61.8 retracement level is there. At that level manipulation of price is not possible as it gets below the extraction cost price of gold today.
For long term buyers of gold. I suggest you wait for a full confirmation of the break of trendline and wait for atleast one period (on monthly) before entering into long postions.
If whipsaw occurs I would enter short positions upto 61.8 retracement levels which is the next major support for gold. At that level its a very very lucrative buy for long term purposes.